The number of properties per branch available to rent hit a record high in March.

ARLA Propertymark is warning this could be a sign of agents merging, rather than overall supply going up.

The trade body’s March private rented sector report found that rental supply rose to 203 properties per member branch in March from 197 in February.

It is the highest figure since records began in 2015, and is up 13% on a year ago.

Demand from prospective tenants also increased from 65 to 67 between February and March.

Meanwhile, the number of tenants experiencing rent rises ahead of the ban continued to be high with 30% of agents witnessing landlords increasing rents, similar to the 34% in February and markedly up from 23% last year.

David Cox, chief executive of ARLA Propertymark, said: “Whilst it’s really positive that the number of properties available per branch hit a record high last month, this may be the first signs of the industry consolidating ahead of the tenant fees ban as agents either sell up or merge.

“This, coupled with landlords exiting the market and rent costs continuing to rise, means the overall picture is far from positive for renters.

“The full effects of the tenant fees ban have not yet been felt, and now the Government is introducing yet more new legislation which will deter new landlords from entering the market, such as abolishing Section 21.

“Until we have greater clarity on the changes planned, this news will only increase pressure on the sector and discourage new landlords from investing, meaning rents will only continue to rise for tenants.”